Bus Eireann Statement
Bus Éireann Statement
Bus Éireann cannot afford a pay increase. The company incurred a €5.6 million loss in 2015 and is forecasting a similar loss for 2016, mainly due to losses on our commercial Expressway services.
Expressway must now be positioned to compete more intensively in a low margin market. Any further increase to our costs, increases the risk for all employees, so the business must urgently address its losses to survive.
In 2016 the financial position has worsened due to a number of factors, including increased competition by low cost operators on commercial routes.
The business requires immediate cost savings of €7m and our existing commercial Expressway services - which are not State-subsidised – need to generate an annual profit to survive. These cost savings must be achieved internally and not through any cuts to service which would impact our customers.
Management have prepared a plan to transform and restructure Expressway into a sustainable business as part of an overall strategic plan for the company. We need to introduce a new competitive model with a new structure and reduced costs.
While this is a major challenge for all employees at Bus Éireann – who we recognise as fully committed to the company – our plan needs to address the urgent financial challenges facing the business. It is imperative that talks with unions continue, on the substantive issues of the financial crisis facing Bus Éireann.
Wednesday, 21st September, 2016